Euro: USD/EUR (EUR=X) Strengthening the Correction
For five consecutive trading sessions, the price of the EUR/USD pair is trying hard to strengthen the opportunity for an upward correction and break through the 1.1200 psychological resistance, but the pair gains did not exceed the 1.1163 level, despite the announcement of many important economic data and influential events, before settling around 1.1145 at the time of writing. The European currency does not appear affected by the weak European economy yesterday. The worst performance of the German economy since 2013 was announced, and as is well known, Germany’s economy is driving the entire continent’s economy, not just the bloc. The Euro will not have the catalyst to do more unless pessimism about the state of the German economy is removed.
Yesterday, financial markets, including the forex market, were on a very important date, as the two largest two economies in the world – the United States of America and China – announced the formal signing of the Phase 1 trade agreement, which stipulates a halt to the tariff war between them, which led the global economy into recession. Although the agreement did not end all tariffs imposed by the two sides during the 18 months of the global trade war, the markets welcomed the move amid cautious anticipation of the extent of commitment by the two parties to the contents of the terms of the agreement.
We noted yesterday that the details of the agreement will be more important than signing it, because it will clarify the next steps for the path of negotiations between the two sides. Markets have not achieved stronger gains, as it was reported that the remaining tariffs may continue until after the US elections in November 2020. The United States has indicated that even after the deal is announced, the accessory that shows the quantities of goods that China has agreed to purchase will remain confidential. Some US officials denied that there were other secret deals. China has agreed to increase purchases of US services, manufactured products, energy and agricultural products by 200 billion dollars this year and next. This arrangement means that China is supposed to buy $40 billion annually from US agricultural exports.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 1.12.
The projected lower bound is: 1.11.
The projected closing price is: 1.11.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.9921. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 50.99. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 97 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -27. This is not a topping or bottoming area. The last signal was a sell 10 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX EUR= closed down -0.002 at 1.113. Volume was 5% below average (neutral) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume___
1.115 1.117 1.113 1.113 61,889
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 1.11 1.11 1.11
Volatility: 4 4 5
Volume: 68,275 58,099 77,964
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX EUR= is currently 0.0% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of EUR= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on EUR= and have had this outlook for the last 26 periods.